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Pakistan a paper MFN of India
By: Salman Abduhu | Published: November 14, 2011
LAHORE – Indian exports to Pakistan are on the rise though it has yet to be granted Most Favourite Nation (MFN) status whereas Pakistani exports to India have downward trend despite its earning MFN status years back from New Delhi.
The real problem, experts say, is that Pakistani exporters cannot get access to Indian markets because of the non-tariff barriers created by Indian bureaucracy. ‘You are MFN on paper but an outcast actually’ is the impression the Pakistani exporters are getting form New Delhi.
The Pak-India bilateral trade, particularly through Wagha border route, is only benefiting to India as 31,897 trucks carrying goods worth Rs21 billion reached Pakistan while only 4,664 trucks having goods of Rs1.33 billion were sent to the nuclear rival state during fiscal year 2010-11.
According to available data, India exported goods of Rs5.27 billion to Pakistan in the four months (July to Oct) of fiscal year 2012, while Pakistan exported products of Rs770.35 million to the neighbouring country in the same period. Figures revealed that as many as 8,643 trucks crossed Wagha border to reach Pakistan from India in this period.
The most important item which Pakistan imports from India is soya oil. As per statistics, during last fiscal year Pakistan imported soya oil of Rs13.14 billion, tomatoes of Rs4.31 billion, garlic worth Rs670.46 million, cotton worth Rs2.7 billion, green chilli and capsicum worth Rs260.61 million, ginger of Rs320 million and some other vegetables, including bitter gourd, lady finger and cucumber, of Rs220 million. During the first four months of the current fiscal year, India exported to Pakistan tomatoes of Rs1.73 billion, soya oil of Rs2.9 billion and cotton of Rs470.95 million.
On the other hand, during the last fiscal year, Pakistan exported to India dry dates (chhohare) of Rs400.61 million and onions of Rs370.32 million. In July 2011 to Oct, Pakistan sent dry dates of only Rs310.12 million and gypsum worth Rs190.64 million to India.
Experts say that before approving the MFN status for India formally, Islamabad has already granted the status of the Most Favoured Nation to India informally as the bilateral trade is largely benefiting India while Pakistan has been a loser. Despite having restricted trade with India, they said, the trade balance by Indian Commerce Ministry shows that Pakistan exports to India, during 2008-09 and 2009-10, stood at $370 million and $276 million respectively, whereas Indian exports to Pakistan without MFN status stood at $1,439 million and $1,573 during the same period respectively.
As a whole the business community in Pakistan is divided on the issue of MFN status to India as interests of the industrialists and traders run in absolutely different directions. However, some business community representatives have reacted seriously to increasing volume of trade with India, saying it should not be at cost of local manufacturers. They criticised the government for its lack of support for local industries. They said that it is very unfortunate that Pakistani delegations have always failed to safeguard the interest of local manufacturers whereas they have advocated the Indian interests.
Some businessmen are highly sceptical of the haste shown so far on the questing of giving India MFN status and have advised the government officials to remain cautious at every level in order to protect national economic interests and encourage local industry to be more competitive and forward looking. They hoped that Pakistan team would safeguard their interests in India during next week’s talks.
All Pakistan Cement Manufacturers said local manufacturers have had no benefit of MFN status given to Pakistan by India in 1995 due to tough procedure and shrewd planning by the Indian authorities. Industrialists said that the Indian exports are rising without MFN status whereas Pakistani exports dropped despite having MFN status. They said, because of the non-tariff barriers created by Indian bureaucracy, the Pakistani exporters could not get access to Indian markets.
Pakistan’s delegation will discuss issues of non-tariff barriers with Indian officials and give it top priority on its agenda aimed at enhancing trade ties with neighbouring country, said president of Lahore Chamber of Commerce and Industry. He said that it is high time that Pakistan demand India remove all non-tariff barriers. He further said that Pakistani manufacturers have been waiting for the equal treatment since 1995, when Pakistan was granted MFN status by India.
Pakistan a paper MFN of India | Pakistan | News | Newspaper | Daily | English | Online
By: Salman Abduhu | Published: November 14, 2011
LAHORE – Indian exports to Pakistan are on the rise though it has yet to be granted Most Favourite Nation (MFN) status whereas Pakistani exports to India have downward trend despite its earning MFN status years back from New Delhi.
The real problem, experts say, is that Pakistani exporters cannot get access to Indian markets because of the non-tariff barriers created by Indian bureaucracy. ‘You are MFN on paper but an outcast actually’ is the impression the Pakistani exporters are getting form New Delhi.
The Pak-India bilateral trade, particularly through Wagha border route, is only benefiting to India as 31,897 trucks carrying goods worth Rs21 billion reached Pakistan while only 4,664 trucks having goods of Rs1.33 billion were sent to the nuclear rival state during fiscal year 2010-11.
According to available data, India exported goods of Rs5.27 billion to Pakistan in the four months (July to Oct) of fiscal year 2012, while Pakistan exported products of Rs770.35 million to the neighbouring country in the same period. Figures revealed that as many as 8,643 trucks crossed Wagha border to reach Pakistan from India in this period.
The most important item which Pakistan imports from India is soya oil. As per statistics, during last fiscal year Pakistan imported soya oil of Rs13.14 billion, tomatoes of Rs4.31 billion, garlic worth Rs670.46 million, cotton worth Rs2.7 billion, green chilli and capsicum worth Rs260.61 million, ginger of Rs320 million and some other vegetables, including bitter gourd, lady finger and cucumber, of Rs220 million. During the first four months of the current fiscal year, India exported to Pakistan tomatoes of Rs1.73 billion, soya oil of Rs2.9 billion and cotton of Rs470.95 million.
On the other hand, during the last fiscal year, Pakistan exported to India dry dates (chhohare) of Rs400.61 million and onions of Rs370.32 million. In July 2011 to Oct, Pakistan sent dry dates of only Rs310.12 million and gypsum worth Rs190.64 million to India.
Experts say that before approving the MFN status for India formally, Islamabad has already granted the status of the Most Favoured Nation to India informally as the bilateral trade is largely benefiting India while Pakistan has been a loser. Despite having restricted trade with India, they said, the trade balance by Indian Commerce Ministry shows that Pakistan exports to India, during 2008-09 and 2009-10, stood at $370 million and $276 million respectively, whereas Indian exports to Pakistan without MFN status stood at $1,439 million and $1,573 during the same period respectively.
As a whole the business community in Pakistan is divided on the issue of MFN status to India as interests of the industrialists and traders run in absolutely different directions. However, some business community representatives have reacted seriously to increasing volume of trade with India, saying it should not be at cost of local manufacturers. They criticised the government for its lack of support for local industries. They said that it is very unfortunate that Pakistani delegations have always failed to safeguard the interest of local manufacturers whereas they have advocated the Indian interests.
Some businessmen are highly sceptical of the haste shown so far on the questing of giving India MFN status and have advised the government officials to remain cautious at every level in order to protect national economic interests and encourage local industry to be more competitive and forward looking. They hoped that Pakistan team would safeguard their interests in India during next week’s talks.
All Pakistan Cement Manufacturers said local manufacturers have had no benefit of MFN status given to Pakistan by India in 1995 due to tough procedure and shrewd planning by the Indian authorities. Industrialists said that the Indian exports are rising without MFN status whereas Pakistani exports dropped despite having MFN status. They said, because of the non-tariff barriers created by Indian bureaucracy, the Pakistani exporters could not get access to Indian markets.
Pakistan’s delegation will discuss issues of non-tariff barriers with Indian officials and give it top priority on its agenda aimed at enhancing trade ties with neighbouring country, said president of Lahore Chamber of Commerce and Industry. He said that it is high time that Pakistan demand India remove all non-tariff barriers. He further said that Pakistani manufacturers have been waiting for the equal treatment since 1995, when Pakistan was granted MFN status by India.
Pakistan a paper MFN of India | Pakistan | News | Newspaper | Daily | English | Online
